Last updated on October 15th, 2023 at 09:03 pm
Cryptocurrencies have gained significant popularity worldwide, and Kenya is no exception.
If you’re looking to buy crypto in Kenya, you’ll be glad to know that several reliable platforms and marketplaces are available.
In this comprehensive guide, we’ll explore the process of buying crypto in Kenya, highlight reputable exchanges and marketplaces, and provide essential tips to ensure a smooth and secure transaction.
So, let’s dive in!
Reputable Exchanges and Marketplaces in Kenya
When it comes to buying crypto in Kenya, it’s crucial to choose a reputable exchange or marketplace that offers a secure and reliable trading environment. Here are four popular options you can consider:
1. Paxful
Paxful is a peer-to-peer (P2P) marketplace that allows users to buy and sell crypto with other individuals.
One of the key advantages of Paxful is its support for multiple payment methods, including M-Pesa, bank transfers, and various other options.
The platform offers a user-friendly interface and a robust escrow system to ensure safe transactions.
To buy cryptocurrency in Paxful in Kenya, follow these steps:
- First, you’ll need a Bitcoin wallet to store your BTC. There are many kinds of crypto wallets out there, and you can choose one that suits your needs (source: Paxful University).
- Go to the Paxful website and search for offers to buy Bitcoin with M-Pesa or other payment methods.
- Select the best offer that suits your needs and click on the “Buy” button.
- Enter the amount of money you want to spend and follow the instructions to complete the transaction.
- Once the transaction is complete, the seller will release the Bitcoin to your Paxful wallet, and you can use it for trading or other purposes.
2. Yellow Card
Yellow Card is a crypto exchange that enables users to buy and sell crypto using Kenyan Shillings (KES).
Like Paxful, Yellow Card supports M-Pesa, bank transfers, and other payment methods.
The exchange boasts a simple and intuitive platform, making it an excellent choice for beginners.
To buy cryptocurrency in Yellow Card in Kenya, follow these steps:
- Sign up for a Yellow Card account on their website or mobile app, which is available on the Google Play Store or App Store.
- Once you sign up, you will be assigned a free Bitcoin wallet. You can also buy other cryptocurrencies like Ethereum.
- Fund your Yellow Card account with Kenyan Shillings (KSH) using mobile money or bank transfer. You can deposit money into your account using M-Pesa or other mobile money providers.
- After funding your account, you can start trading BTC, ETH, and other coins instantly at the best rates with low trading fees.
- Follow the instructions to complete the transaction, and once it’s completed, the cryptocurrency will be added to your Yellow Card wallet.
3. Binance P2P
Binance P2P is a peer-to-peer marketplace offered by the renowned crypto exchange Binance.
This platform allows users to trade directly with each other, offering a wide range of payment options, including M-Pesa and bank transfers.
Binance is known for its advanced security features and liquidity, making it a popular choice among experienced traders.
To buy crypto on Binance P2P in Kenya, you can follow these general steps:
- Open the Binance App and click on “P2P Trading.”
- Specify your search criteria by selecting the payment method you want to use (e.g. Bank payment method and KES currency, or M-PESA payment method and KES currency).
- Choose the P2P offer that suits you best and enter the quantity you wish to buy.
- Confirm the payment method and click “Buy.”
4. BitValve
BitValve is another notable crypto exchange that supports Kenyan Shillings (KES).
It offers a user-friendly platform where you can buy and sell crypto using various payment methods, including M-Pesa and bank transfers.
BitValve provides a secure and efficient trading experience, catering to both beginners and experienced traders.
To buy crypto in Kenya on BitValve, you can follow these steps:
- Visit the BitValve website at www.bitvalve.com.
- Create an account by clicking on the “Sign Up” button and filling in the required details.
- Once you have created an account, log in and click on the “Buy” button.
- Specify the search criteria by selecting the type of cryptocurrency you want to buy, the payment method you prefer (such as M-Pesa), and the value you want to purchase.
- Choose an offer from the list of available offers that meet your criteria.
- Click on the “Buy” button next to the offer you want to purchase.
- Follow the instructions provided to complete the transaction.
- Once the transaction is complete, the crypto will be transferred to your BitValve wallet.
Key Considerations when Buying Crypto in Kenya
While purchasing crypto can be an exciting venture, it’s essential to approach it with caution and diligence. Here are some crucial considerations to keep in mind:
Choose a reputable exchange or marketplace
When dealing with cryptocurrencies, choosing a reputable exchange or marketplace with a solid track record and positive user reviews is crucial. Opting for established platforms like Paxful, Yellow Card, Binance P2P, or BitValve ensures a safer trading experience.
Do thorough research
Before investing in any cryptocurrency, it’s vital to conduct thorough research. Cryptocurrencies are highly volatile, and their prices can fluctuate dramatically. Stay informed about market trends, read expert analyses, and understand the risks involved to make informed investment decisions.
Start with small investments.
If you’re new to crypto in Kenya, starting with small investments is wise.
See, by starting small, you can gain experience and better understand the market dynamics without risking substantial amounts of money.
As you become more comfortable, you can gradually increase your investment.
Store your crypto securely
Once you’ve purchased crypto, it’s crucial to store it securely.
Consider using a hardware or software wallet to protect your digital assets. These wallets provide an additional layer of security by keeping your crypto offline and away from potential online threats.
How to Buy Crypto via M-Pesa
M-Pesa is a widely used mobile money transfer service in Kenya, and many exchanges and marketplaces offer support for M-Pesa payments. Here’s a step-by-step guide on how to buy crypto via M-Pesa:
- Choose an exchange or marketplace that supports M-Pesa: Opt for platforms like Paxful, Yellow Card, or Binance P2P, which facilitate M-Pesa transactions.
- Create an account and verify your identity: Sign up for an account on your chosen platform and complete the necessary verification process. This typically involves providing your name, email address, phone number, and ID verification documents.
- Fund your account with M-Pesa: Once your account is verified, you can fund it with M-Pesa. Follow the platform’s instructions for depositing funds using M-Pesa, which often involve entering your M-Pesa PIN and the desired deposit amount.
- Find a seller accepting M-Pesa: Explore the available offers on the exchange or marketplace to find a seller who is willing to sell crypto for M-Pesa. Take note of the seller’s reputation, trade history, and offered exchange rate.
- Make the payment to the seller: Once you’ve found a suitable seller, initiate the transaction by entering the seller’s M-Pesa details and the amount you want to pay. Follow the platform’s instructions to complete the payment securely.
- Receive your crypto: After the seller confirms the payment, they will release the crypto to your account. You can then view and manage your crypto holdings within your account.
Considerations when Buying Crypto via M-Pesa
While purchasing crypto via M-Pesa offers convenience, there are a few factors to consider:
Potential higher fees
Some exchanges and marketplaces may charge higher fees for M-Pesa transactions compared to other payment methods. It’s essential to factor in these fees when calculating your overall costs.
Potential slower process
Buying crypto via M-Pesa may involve a slightly slower process compared to other payment methods, such as bank transfers. It’s important to have patience during the transaction process and allow for any necessary verification or confirmation steps.
Potential transaction limits
Certain exchanges and marketplaces may impose limits on the amount of crypto you can buy using M-Pesa. Be aware of these limits and ensure they align with your investment goals.
Is Coinbase Legal in Kenya?
Coinbase, a popular cryptocurrency exchange, is not a regulated financial services provider in Kenya. However, it is not illegal to use Coinbase in the country. The Central Bank of Kenya (CBK) has issued warnings to Kenyans about the risks associated with cryptocurrencies but has not implemented specific regulations.
It’s important to note the following risks involved in using Coinbase or any other cryptocurrency exchange in Kenya:
Risk of fraud
Cryptocurrencies have been associated with various fraud and scam incidents. To mitigate this risk, it’s crucial to use reputable exchanges and marketplaces that prioritize security and user protection. Conduct thorough research and read user reviews before engaging in any transactions.
Risk of volatility
Cryptocurrencies are known for their high volatility, and their prices can experience significant fluctuations. This means that the value of your investments can rise or fall rapidly. It’s essential to be prepared for potential losses and only invest funds you can afford to lose.
Risk of regulatory changes
The regulatory landscape surrounding cryptocurrencies is constantly evolving. Governments and financial authorities worldwide are continuously updating their policies. Stay informed about the latest regulations in Kenya to ensure compliance and avoid any potential legal issues.
If you decide to use Coinbase or any other cryptocurrency exchange in Kenya, always exercise caution, educate yourself about the risks, and make informed investment decisions.
In conclusion, buying crypto in Kenya is an exciting opportunity but requires careful consideration and research. Choose reputable exchanges or marketplaces like Paxful, Yellow Card, Binance P2P, or BitValve, and follow the step-by-step guide for buying crypto via M-Pesa.
Remember to store your crypto securely and be aware of the risks involved.
Happy investing!
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